15-B
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Mayra Ochiqui, City Clerk
SUBJECT: Consideration and possible action to approve the Minutes of the November 14, 2025, Special Meeting of the City Council.
DATE: December 8, 2025
EXECUTIVE SUMMARY
None
RECOMMENDATION TO CITY COUNCIL
1) Approve the November 14, 2025, Special Meeting Minutes; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
None
ATTACHMENT
Minutes of the November 14, 2025, Special Meeting… .............. ………………………… 2
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CITY OF BELLFLOWER
SPECIAL MEETING OF THE BELLFLOWER CITY COUNCIL
FRIDAY, NOVEMBER 14, 2025, 10:00 A.M.
BELLFLOWER CITY HALL - COUNCIL CHAMBERS
1 CALL TO ORDER
Mayor Dunton called the Special Meeting to order at 10:09 a.m. in the Council Chambers at Bellflower City Hall, 16600 Civic Center Drive, Bellflower.
2 ROLL CALL
The following Members of the City Council responded present to roll call:
Mayor Ray Dunton
Mayor Pro Tem Sonny R. Santa Ines
Council Member Dan Koops
Council Member Wendi Morse
Council Member Victor A. Sanchez
Staff Participants:
Ryan Smoot, City Manager
Karl H. Berger, City Attorney
Mayra Ochiqui, City Clerk
Len Gorecki, Assistant City Manager/Director of Public Works Anna Garan, Director of Finance
Elizabeth Oba, Director of Planning and Building Services Wangsu Lee, Assistant to the City Manager
Dakota Wallace, Management Analyst I
3 PUBLIC COMMENTS
For the record and prior to receiving public comments, Mayor Dunton introduced the general topics of discussion for the study session, including, without limitation, the distribution tax rates, Cannabis Business Permit (CBP) vacancy created by Deli by Caliva, the total number of dispensaries allowed in the City, and discrepancies that may be present in the Bellflower Municipal Code (BMC) and other resolutions and guidelines that may need to be addressed , noting that the City Council may provide direction to staff, but no formal action will be taken.
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Bellflower City Council Special Meeting Minutes Item No. 3 November 14, 2025 Page 2 of 11
3 PUBLIC COMMENTS – Continued
Damian Martin, Catalyst Cannabis Co., 1) commended the City and staff for their efforts relative to cannabis operations, expressing the opinion that it is a pleasure to operate a cannabis business in the City and it is the best cannabis program in his experience; and 2) highlighted that Catalyst has 33 stores statewide and their goal is to build with other local and statewide operators to be more competitive in the industry as a whole.
Elliot Lewis, Catalyst, 1) stated that Catalyst intends to expand their distribution operations with other cannabis operators to create a “hub” in Northern and Southern California in order to distribute product Statewide; 2) suggested the City a) implement a “graduated scale” for the cannabis distribution tax, such as “1% tax on the first $100 million a year and then a quarter point after that”; b) look into allowing additional cannabis permits in the northeast corner of the City, expressing the opinion that the subject area is considered a “cannabis desert” by operators as there are very few facilities in that area and the City could reap the benefit from customers in surrounding cities; c) expand the allowable operating hours for cannabis businesses from 9:00 p.m. to 10:00 p.m., Sunday through Saturday, to match neighboring cities and improve competitiveness ; 3) reiterated and expressed the opinion that the distribution tax is the main issue and he would be in favor of the City being on “the ground floor of a potential alliance of half the large operators in the State”; and 4) responded to Council Members’ questions.
In response to questions from Mayor Dunton, Council Member Sanchez, and Council Member Koops, Elliot Lewis, Catalyst, confirmed that 1) his businesses are currently generating approximately $100 million in wholesale ; 2) his vision for an alliance includes a hub in Northern California, a hub in Southern California, and put several operators together to become a coalition of 80-90 locations; 3) expressed the opinion that the industry trend is moving to a less fragmented structure and into larger, more consolidated hubs, so the larger hub might as well be situated in the City of Bellflower; 4) clarified that the request to expand the of hours to 10:00 p.m. is to be more in line with other cities and matches the State guidelines, and confirmed that his stores shut the doors at 9:30 p.m. to ensure they are meeting the guidelines; 5) Catalyst currently uses the City as their distribution hub for their entire operations which include 33 locations; 6) his Bellflower store did lose a little bit of revenue with the opening of the new stores in the City of Artesia and their new location in Lynwood; and 7) they want to stay ahead of the industry trends.
For the record, additional public comments were provided during discussion of Item 4-A.
4 STUDY SESSION
A Consideration and possible action to conduct a study session regarding cannabis-related businesses.
City Manager Smoot introduced the item, noting that the public comments received speak to the changes in the industry to which staff is looking to respond.
Bellflower City Council Special Meeting Minutes Item No. 4 -A November 14, 2025 Page 3 of 11
4 STUDY SESSION – Continued
A Consideration and possible action to conduct a study session regarding cannabis-related businesses – Continued
Assistant to the City Manager Lee 1) provided a PowerPoint presentation of the Staff Report; and 2) along with City Manager Smoot, City Attorney Berger, Director of Finance Garan, and Director of Planning and Building Services Oba, responded to Council Members’ questions.
At the request of Mayor Pro Tem Santa Ines, Assistant to the City Manager Lee 1) confirmed cannabis testing is not being conducted in Bellflower; and 2) explained that while some cities have implemented a 0% distribution tax rate, most require that distribution operators work in conjunction with a dispensary.
In response to comments provided by Elliot Lewis, Catalyst, Assistant to the City Manager Lee confirmed that staff would look into the 0% distribution tax in the City of Montebello and provide information to the City Council.
Discussion ensued regarding the City’s CBP fees.
In response to Council Member Sanchez’s question relative to an updated cost recovery assessment, Assistant to the City Manager Lee confirmed that these can be reviewed with Director of Finance Garan following the study session.
In response to Mayor Pro Tem’s question relative to the basis of the annual CBP fee, City Attorney Berger 1) clarified that cost recovery is only a component of the fee, as it also includes a legal “war chest” to ensure the City is protected in the event any of the permits or the City’s overall regulatory scheme are challenged , noting that although there is a mutual indemnification clause stipulated in each permit, the fee would assist with the recovery of any legal fees that is separate and apart from the tax revenue; and 2) as an example, stated that the City expended legal fees in order to track the bankruptcy of one of the permittees, coordinate and file with the receiver, code enforcement measures, staff time, and consultants when needed can all be charged to this particular administrative fee, as intended, noting that it is a policy decision for the City Council whether they would like to adjust this fee.
In response to questions and comments provided by Mayor Pro Tem Santa Ines and Mayor Dunton, City Manager Smoot 1) clarified that the City requires a Conditional Use Permit (“CUP”) and a CBP in order to operate a cannabis business within the City, noting that several CUPs exist without active CBPs; 2) explained that four dispensary CBPs are currently allowed; however, there is one vacancy due to the receivership of Deli by Caliva, further explaining that direction is needed to determine whether the vacancy should be filled and how it should be filled or if it should remain vacant; and 3) confirmed the City can revoke inactive CUPs and/or consider exploring “maintenance” fees to be charged existing and inactive CUP holders.
Bellflower City Council Special Meeting Minutes Item No. 4 -A November 14, 2025 Page 4 of 11
4 STUDY SESSION – Continued
A Consideration and possible action to conduct a study session regarding cannabis-related businesses – Continued
Assistant to the City Manager Lee stated that 1) the City’s current regulations are fragmented, as they were created over time and there is no one comprehensive document that includes all the regulations; 2) staff’s recommendation would be to revoke existing cannabis-related CUPs that have been inoperative beyond the time limitations established in the CUPs; and 3) there is an existing CUP at the former Deli by Caliva site located at 9535 Artesia Boulevard; the property owner submitted an application and fee for a CBP at the subject property, but it has not been processed since the City Council did not authorize the City to process applications for new permits.
City Manager Smoot further clarified that 1) revoking the cannabis -related CUPs would be relatively straight forward compared to other CUPs, as conditions are built into the structure of a CUP that it becomes invalid if the business is not operative for a period of 180 days (six months), and given that cannabis business operations require both a CUP and a CBP, any CUP without a CBP associated with the same location would be subject to revocation; without an active CBP, there could be no cannabis business legally operating at any of those CUP locations; 2) because the City limits the dispensary permits to four permits and one is now vacant, it leaves the question of what the City Council wants to do with that permit, noting that ostensibly the CUP holders could apply for that vacant dispensary permit or other type of CBP; however, the 9535 Artesia Boulevard location would be the most efficient way to fill that vacant permit as it already holds a CUP and CBP; and 3) stated that current operators within the City have expressed support in maintaining only three dispensary CBPs to protect the market share; however, other operators have expressed support in expanding the number of dispensary CBPs to encourage competition in the “cannabis desert” areas, noting that contrary to distribution, dispensaries tend to be more proximity dependent.
For the record, discussion followed regarding Recommendation Nos. 1 - 3 as listed on the PowerPoint presentation provided by Assistant to the City Manager Lee and were considered out of numerical order.
Recommendation No. 3: Update and consolidate cannabis-resolutions (taxes, fees, requirements & standards) and (if necessary) adjustments to the BMC & streamline application process.
For the record, following brief discussion, it was the consensus of the City Council to direct staff to update and consolidate all cannabis-related resolutions into one for ease of access and clarification of any discrepancies, and bring necessary BMC amendments back to the City Council for consideration.
Bellflower City Council Special Meeting Minutes Item No. 4 -A November 14, 2025 Page 5 of 11
4 STUDY SESSION – Continued
A Consideration and possible action to conduct a study session regarding cannabis-related businesses – Continued
Recommendation No. 1: Review all cannabis tax rates & CBP fees – especially distribution and cultivation
Discussion ensued regarding the City’s cultivation tax rate. City Manager Smoot and Assistant to the City Manager Lee responded to Council Members’ questions.
At the request of Mayor Dunton, Mayor Pro Tem Santa Ines, and Council Member Koops relative to the cultivation tax rate, City Manager Smoot stated that 1) he has not received inquiries from operators interested in obtaining a cultivation CBP and the demand seems to be in the dispensary category; 2) a staff recommendation will require an in depth financial impact analysis which may require the industry expertise of a consultant to determine what would financially benefit the City and the cultivation operators; 3) confirmed that staff would look into a “hybrid tax rate” to include a base and percentage; and 4) cannabis operators are required to pay taxes quarterly and, if they are late, penalties are assessed and a tax lien may be placed on the property if not paid.
For the record, relative to the cultivation tax rate, 1) Mayor Dunton stated the opinion that the cultivation tax rate should be lowered to a rate comparable to other cities to be more competitive and “business friendly”; 2) Mayor Pro Tem Santa Ines suggested looking into a “hybrid” model to encourage growth within the cultivation market; 3) Council Member Sanchez expressed support for creating a “hybrid” model or at least bringing it down to the average in the area; and 4) Council Member Koops expressed the opinion that the City should be more proactive in recouping taxes more timely rather than waiting for the amount to build up and confirmed he is in favor of creating a “hybrid” model, but the rate should not be reduced lower than $15 per square foot, which is just above the average.
For the record, following discussion, it was the consensus of the City Council to direct staff to conduct an analysis of the hybrid rate model of the cultivation tax rate, restricted to a minimum of $15 per square foot.
Discussion ensued regarding the City’s distribution tax rate. City Manager Smoot responded to Council Members’ questions.
In response to questions and comments provided by Mayor Dunton relative to the distribution tax rate, City Manager Smoot confirmed that the City can consider a volume-discount tax structure to attract distributors and capture the consolidation of operators here in Bellflower, and as suggested during Public Comments, the City could tax 1% on the first $100 million in sales and lower the tax to 0.25%, or another amount the City Council finds appropriate after that.
Bellflower City Council Special Meeting Minutes Item No. 4 -A November 14, 2025 Page 6 of 11
4 STUDY SESSION – Continued
A Consideration and possible action to conduct a study session regarding cannabis-related businesses – Continued
For the record, following discussion, it was the consensus of the City Council to direct staff to look into creating a regressive tax structure for distribution tax.
CBP Fees and Cost Recovery
Discussion ensued regarding the City’s CBP fees and cost recovery efforts.
City Manager Smoot, Assistant to the City Manager Lee, City Attorney Berger, and Director of Finance Garan responded to Council Members’ questions.
In response to Council Members’ questions, 1) City Manager Smoot explained that operators within the City have expressed the opinion that the fees are considerably high compared to surrounding cities; 2) City Attorney Berger clarified that the annual CBP renewal fee is based on full cost recovery, reiterated that the new CBP administrative fee is not based solely on cost recovery as it also includes the legal “war chest” for regulatory challenges, and the education fee is not cost recovery at all and functions as an mitigation fee; 3) at the request of City Manager Smoot, Assistant to the City Manager Lee further clarified the distinction between the fees, noting that the CBP holders pay an initial CBP application fee, an annual renewal fee of $6,357 to review the application, and if approved by the City Council will pay an additional an annual CBP administrative fee of $33,589 and annual education fee of $5,000; and 4) Director Garan discussed how fees are deposited.
For the record, 1) Mayor Pro Tem Santa Ines suggested revaluating the application and renewal CBP fees, noting that staff has received salary increases over the years and expressed the opinion that the City should ensure it is able to recover all costs fully to keep the process fair and make the City whole; and 2) Council Member Sanchez suggested staff evaluate if the level of fees are still necessary.
Following discussion, it was the consensus of the City Council to direct staff to reassess all cannabis-related fees and propose adjustments to the City Council, if needed.
Recommendation No. 2: Consider reviewing the maximum cannabis-related CUPs/CBPs & dispensaries in the City
Discussion ensued regarding the maximum cannabis-related CUPs/CBPs and dispensaries in the City, and the fourth vacant permit. City Manager Smoot and Director of Finance Garan responded to Council Members’ questions.
Bellflower City Council Special Meeting Minutes Item No. 4 -A November 14, 2025 Page 7 of 11
4 STUDY SESSION – Continued
A Consideration and possible action to conduct a study session regarding cannabis-related businesses – Continued
For the record, City Manager Smoot reiterated that 1) the questions before the City Council for consideration are whether the current limitations on total dispensary CBPs (currently four are allowed) should be maintained and whether and how the City should fill the fourth vacant permit, whether that be to the existing cannabis-related CUP holders, to the existing property owner that has submitted an application, or some other process; and 2) there is an existing CUP at the former Deli by Caliva site located at 9535 Artesia Boulevard, noting that although the City revoked the CBP, the CUP is tied to the land not the business itself, the business is currently in receivership, and the City continues to process tax liens to recoup taxes owed.
In response to questions and comments provided by Mayor Pro Tem Santa Ines relative to the payment of cannabis taxes, 1) Director Garan confirmed that all cannabis taxes are due at the end of the following month after the close of the quarter and the City does not require a deposit; and 2) Council Member Koops suggested requiring operators to prepay the first quarter’s taxes, similar to practices in other industries, to protect the City’s funds and ensure the operator is financially responsible.
For the record, relative to the maximum cannabis-related CUPs and CBPs in the City, 1) Council Member Sanchez suggested expanding the number of dispensary CBPs specifically in the northeast area of the City bordering the 605 and 105 freeways, noting that all of the dispensaries are currently concentrated in one area of the City, expressed the opinion that expanding to the northeast area will bring in a new customer base to increase revenue, and requested staff conduct an analysis of how a fifth and sixth dispensary would impact the City; 2) Mayor Pro Tem Santa Ines expressed concern with expanding the total number of dispensary CBPs, expressing the opinion that four CBPs is sufficient and the City Council should honor past commitments made to voters that there would only be four dispensaries allowed, and noted that voters have approved all recent measures the City has brought forward and that trust should be maintained; 3) Mayor Dunton expressed support for expanding the number of dispensary CBPs; and 4) Council Member Morse expressed concern with expanding the total number of dispensary CBPs, agreeing with Mayor Pro Tem Santa Ines that the City Council should honor past commitments.
Bellflower City Council Special Meeting Minutes Item No. 4 -A November 14, 2025 Page 8 of 11
4 STUDY SESSION – Continued
A Consideration and possible action to conduct a study session regarding cannabis-related businesses – Continued
Regarding the vacant dispensary CBP, 1) Council Member Koops expressed support for issuing the vacant CBP to the property owner at 9535 Artesia Boulevard, expressing the opinion that since the clientele at the location has already been established and there is an existing CUP, it would be the fastest way to issue the vacant CBP and generate revenue for the City; 2) Council Member Sanchez expressed the opinion that though the property owner of 9535 Artesia Boulevard has improved the surrounding area, he woul d like to open the process Citywide to allow for the potential of new applicants in various areas of the City; 3) Mayor Pro Tem Santa Ines stated his support for opening the process Citywide to allow for the potential of new applicants, expressing the opinion that he would like to get the best permittee available; 4) Council Member Morse stated she is willing to issue the vacant CPB to the property owner at 9535 Artesia Boulevard and/or open the process Citywide; and 5) Mayor Dunton stated his support for issuing the vacant CBP to the property owner at 9535 Artesia Boulevard, expressing the opinion that it would be the fastest and most efficient way to fill the vacancy.
For the record, following discussion, Mayor Dunton informally polled the Council Members as to whether they would like to direct staff to look into allowing additional dispensary locations in the City. The poll resulted in Mayor Dunton and Council Member Sanchez in favor; Mayor Pro Tem Santa Ines and Council Member Koops opposed; and Council Member Morse undecided, but “leaning no”. There was no consensus, so no further direction was given to staff on the topic of an analysis of additional dispensary locations in the City.
Discussion ensued regarding the fourth vacant CBP. City Manager Smoot, Director of Finance Garan, City Attorney Berger, and Director of Planning and Building Services Oba responded to Council Members’ questions.
Following brief discussion, City Manager Smoot 1) reiterated that a new applicant would have to apply for a CUP, if one does not currently exist, and a CBP, which could take approximately nine to twelve months to complete, noting that the City is required to process an application for a CUP for City Council consideration; however, the City is not required to issue a CBP; and 2) expressed the opinion that the quickest and most efficient way to fill the vacancy is to issue the CBP to the property owner at 9535 Artesia Boulevard.
Bellflower City Council Special Meeting Minutes Item No. 4 -A November 14, 2025 Page 9 of 11
4 STUDY SESSION – Continued
A Consideration and possible action to conduct a study session regarding cannabis-related businesses – Continued
For the record, 1) Council Member Koops stated that he is in favor of issuing the CBP to the property owner due to clientele recognition, as long as he is able to pass all City and State requirements; 2) Council Member Sanchez reiterated that he is willing to allow the property owner at 9535 Artesia Boulevard to receive the fourth dispensary CBP, as long as the City Council allows a fifth location to open, and if the fifth location is not possible, then stated that he is in favor of opening up the fourth permit Citywide; 3) Mayor Pro Tem stated that he is in favor of opening the process Citywide to ensure the City is getting the best permittee available for the fourth dispensary CBP; 4) Council Member Morse stated that although she was not on the Council when any promises may have been made to residents regarding the number of dispensaries, she did speak with many people when she was running for Council and she was asked to commit to not increase the total number of dispensaries, so she is not in favor of allowing a 5th permit, but is in favor of opening the process for selecting the fourth CBP Citywide; and 5) Mayor Dunton pointed out that there was not a clear consensus of the City Council.
For the record, City Manager Smoot stated that 1) there are entitled CUPs that ostensibly should be revoked or the Council could limit the applications to those properties holding an existing cannabis-related CUP or open the CUP process to anyone and requested some direction in that regard; and 2) anyone can apply for a CUP at any point and the City has an obligation to process it; a CBP on the other hand, is limited and a separate process.
In response to questions from Council Member Koops, City Attorney Berger 1) reminded the City Council that the CUPs were issued in 2017, the process by which the City Council issued them was on a first-come-first-serve basis to get into the process and then a lottery system thereafter, not all CUPs granted were issued a CBP; 2) noted that the CUPs and CBPs are now processed separately, obtaining a CUP is a lengthy six-month process and then a CBP can be applied for if there is one available; and 3) confirmed that the CUP remains with the property until revoked by the City.
In response to questions from Mayor Pro Tem Santa Ines as to whether a CUP could be expedited to the City Council, Director of Planning and Building Services Oba confirmed that staff’s review of the CUP application could be expedited some; however, she explained that the timeline for processing a CUP relies on various external factors, such as the required publication and noticing requirements, external reviews and the accuracy of the documents submitted by the applicant, and plan check review.
Bellflower City Council Special Meeting Minutes Item No. 4 -A November 14, 2025 Page 10 of 11
4 STUDY SESSION – Continued
A Consideration and possible action to conduct a study session regarding cannabis-related businesses – Continued
For the record, City Manager Smoot reviewed the City Council’s options from longest to shortest, 1) require a potential permittee to apply for a new CUP, subsequently apply for a new CBP, and then go through the State’s process; 2) open the process to existing cannabis-related CUP locations, then they would apply for a CBP and go through the State process; and 3) issue the fourth CBP permit to the current property owner who already has a CUP and has expressed they are currently in the State process for that location.
For the record, 1) City Manager Smoot recommended that after this process for issuing the fourth dispensary CBP, that the City go through the process to formally revoke any remaining inactive CUPs so there are no floating CUPs in the future; 2) Council Member Koops suggested that outreach be made to current CUP holders regarding the revocation process; and 3) Mayor Pro Tem Santa Ines alternatively suggested the City consider charging “maintenance” fees to CUP holders in order to maintain an active CUP if there is no CBP in place.
Mayor Dunton gave the property owner of 9535 Artesia Boulevard an opportunity to provide comments.
Courtney Caron, Property Owner’s Representative, 9535 Artesia Boulevard, expressed the opinion that the property located at 9535 Artesia Boulevard was “built out” for a cannabis dispensary and needs minimal changes, the State timelines are shorter than what they were in 2017, their team is ready, and the business would be generating revenue within three to four months, if not sooner.
Elliot Lewis, Catalyst, expressed that Catalyst would not oppose the issuance of the vacant CBP to the property owner of 9535 Artesia Boulevard, expressing the opinion that opening the process Citywide would be a lengthier process.
Kamyar Vaghar, Property Owner, 9535 Artesia Boulevard, stated 1) he owns the subject property and would be the original operator; and 2) he is willing to prepay taxes on behalf of the new business in the amount that is owed.
For the record, 1) Council Member Sanchez acknowledged that the process in 2017 was completed by chance, this is their opportunity to look at this issue wholistically, and reiterated his preference for decentralizing the cannabis businesses, noting that there are three dispensaries and a cultivation business in Council District 4 which he represents; and 2) Mayor Dunton stated that the other two dispensaries are in Council District 5 which he represents.
Bellflower City Council Special Meeting Minutes Item No. 4 -A November 14, 2025 Page 11 of 11
4 STUDY SESSION – Continued
A Consideration and possible action to conduct a study session regarding cannabis-related businesses – Continued
Following brief discussion, at the request of Mayor Pro Tem Santa Ines, City Attorney Berger confirmed that the City can potentially charge “liquidated damages” to an operator that does not open within the timeframe set forth by the City Council.
City Manager Smoot confirmed that staff has the direction needed to move forward.
For the record, there was no formal action taken on this item.
5 Adjournment
Without objection, Mayor Dunton adjourned the meeting at 12:22 p.m.
Ray Dunton, Mayor
City of Bellflower
ATTEST:
Mayra Ochiqui, City Clerk
Approved: December 8, 2025